PTFE (Teflon) Coating Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The manufacturing sector has faced tough times over the past five years. As a result, demand for PTFE coatings plummeted as demand from the industry's key manufacturing markets fell. However, rising disposable incomes are boosting demand for consumer products that use PTFE as an input, thereby increasing demand for the industry's products. Over the next five years, rising oil prices will increase input costs, but PTFE manufacturers will be able to raise prices as a result, giving industry revenue a much-needed boost. For these reasons, industry research firm IBISWorld has added a report on the PTFE (Teflon) Coating Manufacturing industry to its growing industry report collection.

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Rising consumer purchasing power is reviving demand for PTFE manufacturers' products

Polytetrafluoroethylene, commonly known as PTFE, can be repeatedly softened and hardened by alternately heating and cooling, which allows PTFE to make products nonstick, less likely to corrode and heat resistant, among other things. As a result, PTFE is used in many different manufacturing applications. Unfortunately for industry operators, the PTFE (Teflon) Coating Manufacturing industry experienced tough times during the past five years. Household product manufacturing, automotive manufacturing and industrial manufacturing sectors all struggled as a result of the recession and these effects hurt industry revenue. In the five years to 2012, industry revenue has increased at an average annual rate of 0.4% to $1.1 billion, says IBISWorld industry analyst Lauren Setar. Industrial production and manufacturing experienced significant demand declines over the five years to 2012. Cash-strapped consumers bought fewer manufactured goods and delayed many purchases during this time. Because industry products are used in so many applications, industry revenue plummeted. However, industry revenue has risen since 2010 due to a strengthening economy and improved consumer spending. Manufacturing activity picked up as consumers purchased more goods. As a result, industry revenue is expected to continue increasing 2.9% in 2012.

However, rising input costs have challenged industry operators over the past five years. For example, the price of crude oil, a key input for producing PTFE, has risen at an annualized rate of 8.0% over the past five years. Rising oil prices and volatile demand from key downstream markets have led operators to cut labor forces and close facilities, says Setar. However, due to these cost-cutting measures, profit margins increased slightly over the past five years. The PTFE (Teflon) Coating Manufacturing industry is estimated to have a moderate level of concentration. Market share concentration has remained relatively stable over the past five years. In general, revenue hikes are typically followed by more participants entering the market. Concentration in major cities is low; this is due to the industry's few PTFE manufacturing facilities in major cities, and the number of regulations that makes it uneconomic to create new facilities. As of 2012, DuPont is the only major participant. DuPont currently has domestic facilities in Florida, Delaware, Tennessee and Mississippi.

Industry operators have also faced increased regulation over the past five years amid concerns of harmful chemicals. Companies have shifted manufacturing operations accordingly and increased research and development efforts. For example, DuPont has created and commercialized new manufacturing technologies. In the five years to 2017, the industry is expected to benefit from increased manufacturing and consumer spending. Additionally, input prices are expected to continue rising, but operators will pass this cost on to consumers via higher prices. Consequently, IBISWorld expects industry revenue to rise. For more information, visit IBISWorld’s PTFE (Teflon) Coating Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures polytetrafluoroethylene (PTFE). Although PTFE is most well known by the brand Teflon, it is also made under more than 100 other brand names. PTFE has a wide variety of uses, including creating nonstick surfaces on cookware, acting as a lubricant and working as a chemical catalyst.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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